Copy trading is a type of online trading where investors can automatically copy the trades made by strategy providers. The process involves setting up a copy trading account with Windsor Brokers and selecting a trader to copy.

Copy trading allows investors with limited trading experience, time, or knowledge to participate in the financial markets by relying on the trades of others. They can simply follow and replicate the trading strategies of other more experienced traders, known as Strategy Providers. It is important to note that copy trading can be risky and investors should carefully consider the track record and risk management strategy of the Providers they choose to follow.

A Provider is someone who shares their trading strategies with other traders known as Followers. The Followers can then mirror the trading activities of the Provider in their own trading accounts. Providers lay out their trading strategies and create special offers that Followers can subscribe to. These offers will determine the Providers’ compensation, known as the Performance Fee.

A Follower is someone who copies the trades of a Provider. A Follower account can only follow one Provider at a time and each Provider they follow is considered a “subscription”. Followers can set up copying parameters and risk management rules for their subscriptions. (Note: Followers can create multiple copy trading follower accounts in order to copy multiple Providers at a time)

A Performance Fee is a percentage of a profitable trading result of a Follower’s subscription, which is paid to the Provider. The fee is only earned when the profit of the Follower’s subscription surpasses the most recent High Water Mark (HWM), which is the maximum recorded level or value of profit that was last achieved by the Follower’s subscription.

Profit, and therefore the Performance Fee, are calculated on a Weekly Trading Interval. The calculation can be determined by the difference between the current equity, and the equity of the previous week. Equity is your account balance plus the floating profit (or loss) of all your open positions.

The Performance Fee % is determined by the Provider based on the offer they want Followers to subscribe to, but the formula is always the same: Performance fee = Subscription’s Profit x Fee %

For example: Performance Fee = 10%

Week 1 PnL = $400 → $40 Performance fee

Week 2 PnL = -$200 → No Fee ($400 – $200 = $200 < $400 HWM)

Week 3 PnL = $300 → $10 Performance fee ($400 – $200 + $300 = $500; $500 – $400 = $100)

WB Copy Trading may not be available in your region. For availability, please refer to the Client Portal.